Elgin Platform Gas Leak – Financial Implications

Press Release
Wednesday, April 11, 2012
Elgin Field Platform: Photo credit: Total

Patrick de la Chevardiere, Total CFO, explains financial implications of the Elgin Platform gas leak problem

Excerpts from the speech follow:

"From an environmental standpoint, it is important to understand that Elgin is a natural gas and condensate field. It is not an oil field. While we understand the comparisons to Macondo are inevitable, we would like to state clearly that the situations are very different. There is no crude oil involved here, and therefore the current impact on and risks for the environment are relatively low.

Let me now give you our current best estimate of the financial implication of the Elgin situation. Following this incident, we have shut down the Elgin field together with the adjacent Franklin field.

To give you a sense of the contribution to our production of these fields, Elgin-Franklin produced about 130 kboe/d of production in 2011, and Total's net share based on our 46.2% interest was about 60 kboe/d. Our budget included estimated Elgin-Franklin production of 53 kboe/d net into Total for 2012. This is about 2% of our total production.

In terms of lost earnings, we estimate that the shut-in production represents a negative impact of about $1.5 million per day at the net operating income. In addition, estimated cost of the response and remediation activities currently underway is around $1 million per day for Total, including the costs of the two drilling rigs mobilized for the relief wells.

We have third-party insurance that should provide adequate coverage both for property damage, including the cost of remediation, and for liability, including environmental damage. We appreciate the level of concern in the market, so let me assure you that we believe we have ample resources to deal with this situation. We have a robust liquidity position with $19 billion of cash and cash equivalents on the balance sheet as of the end of 2011, and we also have undrawn committed credit lines for about $10 billion. In addition, we are confident that this event has not impacted our ability to access the capital markets."

Maritime Today


The Maritime Industry's original and most viewed E-News Service

Maritime Reporter April 2016 Digital Edition
FREE Maritime Reporter Subscription
Latest Maritime News    rss feeds

People & Company News

Offshore Casualty: Harkand Group Collapses

As the prolonged slump in energy prices continues to drag on a number of oil and gas and maritime players, word has it that Harkand Group has succumbed, according to staff reports and a report on www.

Louis Dreyfus, Amaggi Hire HSBC to Sell Terminal Stake

Agricultural commodity traders Louis Dreyfus Co B.V. and Amaggi Group have hired HSBC Holdings Plc to sell part or the entire 25 percent stake they hold in a terminal at the Brazilian port of Itaqui,

Shell Presents Crewmember Safety Awards

Shell Shipping and Maritime, Americas recently held its third annual Goal Zero Hero Awards dinner in Houston, recognizing the crewmembers of 21 contracted/chartered vessels,

Offshore

Offshore Casualty: Harkand Group Collapses

As the prolonged slump in energy prices continues to drag on a number of oil and gas and maritime players, word has it that Harkand Group has succumbed, according to staff reports and a report on www.

Transocean Posts Quarterly Profit on Cost Cutting

Offshore rig contractor Transocean Ltd posted a quarterly profit, compared with a year-earlier loss, as cost cutting helped counter a slump in crude oil prices.

Skandi Paraty Delivered and On-hire

Skandi Paraty, owned by Norskan Offshore Ltda, has been delivered from the yard and went on-hire on a four years contract with Petrobras.   Skandi Paraty is an AHTS,

Finance

Offshore Casualty: Harkand Group Collapses

As the prolonged slump in energy prices continues to drag on a number of oil and gas and maritime players, word has it that Harkand Group has succumbed, according to staff reports and a report on www.

Louis Dreyfus, Amaggi Hire HSBC to Sell Terminal Stake

Agricultural commodity traders Louis Dreyfus Co B.V. and Amaggi Group have hired HSBC Holdings Plc to sell part or the entire 25 percent stake they hold in a terminal at the Brazilian port of Itaqui,

ITIC Reports on Ship Agents' Costly Transhipment Errors

International Transport Intermediaries Club (ITIC) says it continues to deal on a regular basis with claims resulting from errors by agents involving transhipment cargoes.

Environmental

DNV GL 7 JIPs in North America

In a concerted drive to find smart solutions to safely reduce complexities and cost in the North American oil and gas industry, DNV GL is leading seven new joint

Recent strength in dry bulk shipping to be short-lived - Drewry

Drewry forecasts dry bulk freight rates in 2016 will be, on average, lower than in 2015, as the medium-to-long term fundamentals for dry bulk shipping will remain challenging,

Dryad Maritime Unveil WxConnect

Today, 5th May 2016, Dryad Maritime release WxConnect, a new scalable, managed weather forecasting service for ships and fleets. The launch of the service comes

Casualties

Mariner Rescued after 2 Months at Sea

A 29-year-old man arrived in good condition to Honolulu Wednesday aboard a Coast Guard small boat after being rescued by merchant mariners in the Southeastern Pacific

ICS Pushing For Balanced Update of York Antwerp Rules

At the Comité Maritime International (CMI) Conference, in New York this week, the International Chamber of Shipping (ICS) will be pressing to ensure that the proposed

UNSC Highlights IMO's capacity-building work in Gulf of Guinea

IMO Secretary-General Kitack Lim has welcomed the Presidential Statement from the United Nations Security Council (S/PRST/2016/4) in which the Council strongly condemns acts of murder,

 
 
Maritime Security Maritime Standards Navigation Pod Propulsion Salvage Ship Repair Ship Simulators Shipbuilding / Vessel Construction Sonar Winch
rss | archive | history | articles | privacy | contributors | top maritime news | about us | copyright | maritime magazines
maritime security news | shipbuilding news | maritime industry | shipping news | maritime reporting | workboats news | ship design | maritime business

Time taken: 0.1513 sec (7 req/sec)